SMSF and Contributions

Hopefully the question is framed correctly

Where you have a investment property in your SMSF and contribute personal money from wages to your SMSF, are your concessional contributions included in your tax deductions?

say you contribute $25,000 - does that get reduced for tax purposes by any property tax deductions?

 

It depends.

The deduction may be non-concessional or concessional and you may or may not be permitted to contribute up to $25K anyway.

I would suggest you need to seek financial advice as there are many issues to the question that cannot be easily addressed.

The issue is also affected by the tax position for the fund prior to the contributions anyway. One of the msitakes DIY SMSF often make is to buy a neg geared property that drains the cashflow from contributions. The tax issue is just 15% so set that aside and be more concerned with consuming contributions to sustain a dud investment.

 

Negative gearing in a low tax environment, yuck!

 

I believe it does but I am not qualified to answer or provide advice.

So if the property produced a net loss of $5k in the smsf, this would be subtracted from the $25k concessional contributions, meaning the 15% tax would apply to $20k. This is what happened in my smsf.

 

Perhaps. But with two members and only one contributes one members balance may rise and the other falls. The members balance that falls cannot become 0.00 or less.